Incoterms® 2010

incoterms 2010 final.e$Sebook (original)_incoterms cover try 22/10/13 16:35 Page1 Incoterms ® 2010 EXW FCA CPT CIP DAT DAP DDP FAS FOB CFR CIF Incoterms® rules define the responsibilities of buyers and sellers for the delivery of goods under sale contracts They are the authoritative rules for determining how costs and risks are allocated to the parties Incoterms rules are regularly incorporated into sale contracts worldwide and have become part of the daily language of trade Incoterms® 2010 contains the ICC rules for use of the 11 Incoterms trading terms It takes into account the latest developments in commercial practice, and updates and consolidates some of the former rules All sale contracts should make reference to the Incoterms® 2010 rules as the latest version of the Incoterms rules The International Chamber of Commerce, the world business organization, based in Paris, is the global leader in the development of standards, rules and reference guides for international trade ICC Publication No 715E ISBN : 978-92-842-0080-1 ICC Business Bookstore iccbooks.com Cover illustratio n: ' istockphoto.com/Geopaul ICC has been writing and publishing the Incoterms rules for more than 70 years, providing importers, exporters, lawyers, transporters, insurers and students in the international arena with rules and guidance reflecting the latest developments in the trading environment ICC rules for the use of domestic and international trade terms ® Incoterms 2010 ICC rules for the use of domestic and international trade terms Entry into force: January 2011 International Chamber of Commerce Copyright © 2010 International Chamber of Commerce All rights reserved ICC holds all copyright and other intellectual property rights in this collective work No part of this work may be reproduced, copied, distributed, transmitted, translated or adapted in any form or by any means – graphic, electronic or mechanical, and including without limitation, photocopying, scanning, recording, taping, or by use of computer, the internet or information retrieval systems – without written permission of ICC through ICC Services, Publications Department “Incoterms” is a registered trademark of the International Chamber of Commerce Rules on the correct usage of the trademark can be found on page 125 © 2010 International Chamber of Commerce The English language version of Incoterms® 2010, ICC rules for the use of domestic and international trade terms, provides the official text of the rules ICC Services Publications 38 Cours Albert 1er 75008 Paris France ICC Publication No 715E ISBN: 978-92-842-0080-1 www.iccbooks.com Incoterms ® 2010 CONTENTS Foreword Introduction INCOTERMS® 2010 Rules for any mode or modes of transport EXW 15 FCA 23 CPT 33 CIP 41 DAT 53 DAP 61 DDP 69 FAS 79 FOB 87 CFR 95 CIF 105 Incoterms® 2010 Drafting Group 119 ICC Dispute Resolution 124 Copyright notice and synopsis of trademark usage rules 125 ICC at a glance 126 Other Incoterms® 2010 products 127 ICC publications for global business 128 © 2010 International Chamber of Commerce Rules for sea and inland waterway transport International Chamber of Commerce FOREWORD By Rajat Gupta, ICC Chairman The global economy has given businesses broader access than ever before to markets all over the world Goods are sold in more countries, in larger quantities, and in greater variety But as the volume and complexity of global sales increase, so possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted © 2010 International Chamber of Commerce TABLE OF CONTENTS The Incoterms® rules, the ICC rules on the use of domestic and international trade terms, facilitate the conduct of global trade Reference to an Incoterms® 2010 rule in a sale contract clearly defines the parties’ respective obligations and reduces the risk of legal complications Since the creation of the Incoterms rules by ICC in 1936, this globally accepted contractual standard has been regularly updated to keep pace with the development of international trade The Incoterms® 2010 rules take account of the continued spread of customs-free zones, the increased use of electronic communications in business transactions, heightened concern about security in the movement of goods and changes in transport practices Incoterms® 2010 updates and consolidates the ‘delivered’ rules, reducing the total number of rules from 13 to 11, and offers a simpler and clearer presentation of all the rules Incoterms® 2010 is also the first version of the Incoterms rules to make all references to buyers and sellers gender-neutral The broad expertise of ICC’s Commission on Commercial Law and Practice, whose membership is drawn from all parts of the world and all trade sectors, ensures that the Incoterms® 2010 rules respond to business needs everywhere ICC would like to express its gratitude to the members of the Commission, chaired by Fabio Bortolotti (Italy), to the Drafting Group, which comprised Charles Debattista (Co-Chair, UK), Christoph Martin Radtke (Co-Chair, France), Jens Bredow (Germany), Johnny Herre (Sweden), David Lowe (UK), Lauri Railas (Finland), Frank Reynolds (US), and Miroslav Subert (Czech Republic), and to Asko Raty (Finland) for assistance with the images depicting the 11 rules Incoterms ® 2010 INTRODUCTION The Incoterms®1 rules explain a set of three-letter trade terms reflecting business-to-business practice in contracts for the sale of goods The Incoterms rules describe mainly the tasks, costs and risks involved in the delivery of goods from sellers to buyers How to use the Incoterms® 2010 rules Incorporate the Incoterms® 2010 rules into your contract of sale Choose the appropriate Incoterms rule TABLE OF CONTENTS The chosen Incoterms rule needs to be appropriate to the goods, to the means of their transport, and above all to whether the parties intend to put additional obligations, for example such as the obligation to organize carriage or insurance, on the seller or on the buyer The Guidance Note to each Incoterms rule contains information that is particularly helpful when making this choice Whichever Incoterms rule is chosen, the parties should be aware that the interpretation of their contract may well be influenced by customs particular to the port or place being used If you want the Incoterms® 2010 rules to apply to your contract, you should make this clear in the contract, through such words as, “[the chosen Incoterms rule including the named place, followed by] Incoterms® 2010” Specify your place or port as precisely as possible The chosen Incoterms rule can work only if the parties name a place or port, and will work best if the parties specify the place or port as precisely as possible A good example of such precision would be: Under the Incoterms rules Ex Works (EXW), Free Carrier (FCA), Delivered at Terminal (DAT), Delivered at Place (DAP), Delivered Duty Paid (DDP), Free Alongside Ship (FAS), and Free on Board (FOB), the named place is the place where delivery takes place and where risk passes from the seller to the buyer Under the Incoterms rules Carriage Paid To (CPT), Carriage and Insurance Paid To (CIP), Cost and Freight (CFR) and Cost, Insurance and Freight (CIF), the named place differs from the place of delivery Under these four Incoterms rules, the named 1.“Incoterms” is a registered trademark of the International Chamber of Commerce © 2010 International Chamber of Commerce “FCA 38 Cours Albert 1er, Paris, France Incoterms® 2010” International Chamber of Commerce place is the place of destination to which carriage is paid Indications as to place or destination can helpfully be further specified by stating a precise point in that place or destination in order to avoid doubt or argument Remember that Incoterms rules not give you a complete contract of sale TABLE OF CONTENTS Incoterms rules say which party to the sale contract has the obligation to make carriage or insurance arrangements, when the seller delivers the goods to the buyer, and which costs each party is responsible for Incoterms rules, however, say nothing about the price to be paid or the method of its payment Neither they deal with the transfer of ownership of the goods, or the consequences of a breach of contract These matters are normally dealt with through express terms in the contract of sale or in the law governing that contract The parties should be aware that mandatory local law may override any aspect of the sale contract, including the chosen Incoterms rule Main features of the Incoterms® 2010 rules Two new Incoterms rules – DAT and DAP – have replaced the Incoterms 2000 rules DAF, DES, DEQ and DDU The number of Incoterms rules has been reduced from 13 to 11 This has been achieved by substituting two new rules that may be used irrespective of the agreed mode of transport – DAT, Delivered at Terminal, and DAP, Delivered at Place – for the Incoterms 2000 rules DAF, DES, DEQ and DDU © 2010 International Chamber of Commerce Under both new rules, delivery occurs at a named destination: in DAT, at the buyer’s disposal unloaded from the arriving vehicle (as under the former DEQ rule); in DAP, likewise at the buyer’s disposal, but ready for unloading (as under the former DAF, DES and DDU rules) The new rules make the Incoterms 2000 rules DES and DEQ superfluous The named terminal in DAT may well be in a port, and DAT can therefore safely be used in cases where the Incoterms 2000 rule DEQ once was Likewise, the arriving “vehicle” under DAP may well be a ship and the named place of destination may well be a port: consequently, DAP can safely be used in cases where the Incoterms 2000 rule DES once was These new rules, like their predecessors, are “delivered”, with the seller bearing all the costs (other than those related to import clearance, where applicable) and risks involved in bringing the goods to the named place of destination Incoterms ® 2010 Classification of the 11 Incoterms® 2010 rules The 11 Incoterms® 2010 rules are presented in two distinct classes: EXW EX WORKS FCA FREE CARRIER CPT CIP CARRIAGE PAID TO CARRIAGE AND INSURANCE PAID TO DAT DAP DDP DELIVERED AT TERMINAL DELIVERED AT PLACE DELIVERED DUTY PAID RULES FOR SEA AND INLAND WATERWAY TRANSPORT FAS FOB FREE ALONGSIDE SHIP FREE ON BOARD CFR CIF COST AND FREIGHT COST INSURANCE AND FREIGHT The first class includes the seven Incoterms® 2010 rules that can be used irrespective of the mode of transport selected and irrespective of whether one or more than one mode of transport is employed EXW, FCA, CPT, CIP, DAT, DAP and DDP belong to this class They can be used even when there is no maritime transport at all It is important to remember, however, that these rules can be used in cases where a ship is used for part of the carriage In the second class of Incoterms® 2010 rules, the point of delivery and the place to which the goods are carried to the buyer are both ports, hence the label “sea and inland waterway” rules FAS, FOB, CFR and CIF belong to this class Under the last three Incoterms rules, all mention of the ship’s rail as the point of delivery has been omitted in preference for the goods being delivered when they are “on board” the vessel This more closely reflects modern commercial reality and avoids the rather dated image of the risk swinging to and fro across an imaginary perpendicular line © 2010 International Chamber of Commerce TABLE OF CONTENTS RULES FOR ANY MODE OR MODES OF TRANSPORT International Chamber of Commerce Rules for domestic and international trade Incoterms rules have traditionally been used in international sale contracts where goods pass across national borders In various areas of the world, however, trade blocs, like the European Union, have made border formalities between different countries less significant Consequently, the subtitle of the Incoterms® 2010 rules formally recognizes that they are available for application to both international and domestic sale contracts As a result, the Incoterms® 2010 rules clearly state in a number of places that the obligation to comply with export/import formalities exists only where applicable TABLE OF CONTENTS Two developments have persuaded ICC that a movement in this direction is timely Firstly, traders commonly use Incoterms rules for purely domestic sale contracts The second reason is the greater willingness in the United States to use Incoterms rules in domestic trade rather than the former Uniform Commercial Code shipment and delivery terms Guidance Notes Before each Incoterms® 2010 rule you will find a Guidance Note The Guidance Notes explain the fundamentals of each Incoterms rule, such as when it should be used, when risk passes, and how costs are allocated between seller and buyer The Guidance Notes are not part of the actual Incoterms® 2010 rules, but are intended to help the user accurately and efficiently steer towards the appropriate Incoterms rule for a particular transaction Electronic communication © 2010 International Chamber of Commerce Previous versions of Incoterms rules have specified those documents that could be replaced by EDI messages Articles A1/B1 of the Incoterms® 2010 rules, however, now give electronic means of communication the same effect as paper communication, as long as the parties so agree or where customary This formulation facilitates the evolution of new electronic procedures throughout the lifetime of the Incoterms® 2010 rules Insurance cover The Incoterms® 2010 rules are the first version of the Incoterms rules since the revision of the Institute Cargo Clauses and take account of alterations made to those clauses The Incoterms® 2010 rules place information duties relating to insurance in articles A3/B3, which deal with contracts of carriage and insurance These provisions have been moved from the more generic articles found in articles A10/B10 of the Incoterms 2000 rules The language in articles A3/B3 relating to insurance has also been altered with a view to clarifying the parties’ obligations in this regard Incoterms ® 2010 Security-related clearances and information required for such clearances There is heightened concern nowadays about security in the movement of goods, requiring verification that the goods not pose a threat to life or property for reasons other than their inherent nature Therefore, the Incoterms® 2010 rules have allocated obligations between the buyer and seller to obtain or to render assistance in obtaining security-related clearances, such as chain-of-custody information, in articles A2/B2 and A10/B10 of various Incoterms rules Under Incoterms rules CPT, CIP, CFR, CIF, DAT, DAP, and DDP, the seller must make arrangements for the carriage of the goods to the agreed destination While the freight is paid by the seller, it is actually paid for by the buyer as freight costs are normally included by the seller in the total selling price The carriage costs will sometimes include the costs of handling and moving the goods within port or container terminal facilities and the carrier or terminal operator may well charge these costs to the buyer who receives the goods In these circumstances, the buyer will want to avoid paying for the same service twice: once to the seller as part of the total selling price and once independently to the carrier or the terminal operator The Incoterms® 2010 rules seek to avoid this happening by clearly allocating such costs in articles A6/B6 of the relevant Incoterms rules String sales In the sale of commodities, as opposed to the sale of manufactured goods, cargo is frequently sold several times during transit “down a string” When this happens, a seller in the middle of the string does not “ship” the goods because these have already been shipped by the first seller in the string The seller in the middle of the string therefore performs its obligations towards its buyer not by shipping the goods, but by “procuring” goods that have been shipped For clarification purposes, Incoterms® 2010 rules include the obligation to “procure goods shipped” as an alternative to the obligation to ship goods in the relevant Incoterms rules Variants of Incoterms rules Sometimes the parties want to alter an Incoterms rule The Incoterms® 2010 rules not prohibit such alteration, but there are dangers in so doing In order to avoid any unwelcome surprises, the parties would need to make the intended effect of such alterations extremely clear in their contract Thus, for example, if the allocation of costs in the Incoterms® 2010 rules is altered in the contract, the parties should also clearly state whether they intend to vary the point at which the risk passes from seller to buyer © 2010 International Chamber of Commerce TABLE OF CONTENTS 8 Terminal handling charges Notices to the seller The buyer must, whenever it is entitled to determine the time for shipping the goods and/or the point of receiving the goods within the named port of destination, give the seller sufficient notice thereof B8 Proof of delivery The buyer must accept the transport document provided as envisaged in A8 if it is in conformity with the contract B9 Inspection of goods The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export © 2010 International Chamber of Commerce TABLE OF CONTENTS B7 CIF Incoterms ® 2010 115 International Chamber of Commerce CIF A10 Assistance with information and related costs The seller must, where applicable, in a timely manner, provide to or render assistance in obtaining for the buyer, at the buyer’s request, risk and expense, any documents and information, including security-related information, that the buyer needs for the import of the goods and/or for their transport to the final destination © 2010 International Chamber of Commerce TABLE OF CONTENTS The seller must reimburse the buyer for all costs and charges incurred by the buyer in providing or rendering assistance in obtaining documents and information as envisaged in B10 116 B10 Assistance with information and related costs The buyer must, in a timely manner, advise the seller of any security information requirements so that the seller may comply with A10 The buyer must reimburse the seller for all costs and charges incurred by the seller in providing or rendering assistance in obtaining documents and information as envisaged in A10 CIF Incoterms ® 2010 © 2010 International Chamber of Commerce TABLE OF CONTENTS The buyer must, where applicable, in a timely manner, provide to or render assistance in obtaining for the seller, at the seller’s request, risk and expense, any documents and information, including security-related information, that the seller needs for the transport and export of the goods and for their transport through any country 117 © 2010 International Chamber of Commerce International Chamber of Commerce 118 Incoterms ® 2010 INCOTERMS® 2010 DRAFTING GROUP The Incoterms® 2010 rules were drafted by a select international group of ICC member experts on the Incoterms® rules, in consultation with the broader global ICC membership through the network of ICC national committees The wide geographical and sectoral scope of the consultative process ensures that the Incoterms® 2010 rules reflect the current realities of international trade and respond to business needs everywhere CO-CHAIRS Charles Debattista is an active arbitrator in international trade disputes and takes appointments under ICC and other institutional rules He is also a Registered European Lawyer with the Bar of England and Wales and accepts instructions as counsel before international arbitral tribunals Mr Debattista is also a professor of Commercial Law at the University of Southampton in the UK He has written many books and articles on international sale contracts, the carriage of goods by sea and letters of credit He is a member of ICC’s Commercial Law and Practice Commission, of the Banking Commission and of the Transport Commission He was Chair of the Incoterms 2000 Drafting Group and Co-Chair of the Incoterms® 2010 Drafting Group TABLE OF CONTENTS CHARLES DEBATTISTA Mr Radtke is a partner of the French law firm Lamy & Associés He leads the firm’s international team and specializes in international trade law, agency and distribution, EC law, French and German business law, international arbitration, and international litigation Admitted at the French and the German Bar, Mr Radtke has published articles on international contract law and arbitration and has taught at the Paris-based Institut de Droit Comparé In addition to his role on the Incoterms® 2010 Drafting Group, Mr Radtke is Chair of the Commercial Law and Practice Commission of ICC France, and Vice-Chair of the French-German Lawyers’ Association He lectures widely on the Incoterms rules and has contributed to ICC model contracts including the ICC Model Distributorship contract and the Commercial Agency Contract, as well as to the ICC Legal Handbook on Global Sourcing Contracts © 2010 International Chamber of Commerce CHRISTOPH MARTIN RADTKE 119 International Chamber of Commerce DRAFTING GROUP MEMBERS © 2010 International Chamber of Commerce TABLE OF CONTENTS JENS BREDOW 120 Jens Bredow is the Secretary General of the German Institution of Arbitration in Cologne and an attorney in private practice, specializing in international trade law and arbitration In addition, he serves as an adviser to the German Ministry of Justice as a participant in UNCITRAL’s Working Party on Arbitration and Conciliation, and is also a lecturer at Bonn University He is also an experienced arbitrator, serving frequently as chair or sole arbitrator in a range of international proceedings Mr Bredow, the former Director of ICC Germany, was also a member of the Drafting Groups that revised the Incoterms® rules in 1990 and 2000 He currently sits on the Incoterms rules Panel of Experts JOHNNY HERRE Professor Johnny Herre is a Supreme Court Justice at the Supreme Court of Sweden Prior to joining the court, he spent many years as a Professor at the Stockholm School of Economics, where he served a term as Head of the Department of Law and from which he earned a Master of Science in Economics and Business and a PhD in Law, with a focus on damages in sale of goods law In addition to publishing widely on issues related to the sale of goods, contracts, the law of obligations and consumer law, Professor Herre has extensive experience in arbitration, including as arbitrator and chair of tribunals in international arbitral proceedings A member of the Study Group on a European Civil Code for many years, he is currently chair of ICC Sweden’s group on Commercial Law and Practice Incoterms ® 2010 DAVID LOWE A partner at the London office of international law firm Wragge & Co LLP, David Lowe leads the firm’s commercial contracts team His expertise is in advising supply chain clients on the international supply of goods In this capacity, he has advised: • • • • TABLE OF CONTENTS • Mr Lowe’s experience of advising buyers and sellers of manufactured goods (which are typically transported in containers) has shaped his contribution to Incoterms® 2010 Mr Lowe also chairs the ICC UK Commercial Law and Practice Committee • international retailers on sourcing products in the Far East; manufacturers of industrial products on international distribution networks; European distributors on import arrangements with international manufacturers; international commodity traders ranging from bulk cement to coal; European manufacturers and retailers on entering new international markets; and international suppliers entering the European market LAURI RAILAS Dr Railas is the former Secretary General of ICC Finland and the former Secretary of the Arbitration Institute of the Central Chamber of Commerce of Finland His experience and practice include international trade and transport law, marine insurance and electronic commerce Dr Railas has been involved in trade facilitation work under the auspices of the United Nations and has written books and articles on international trade law In addition to Incoterms® 2010, Dr Railas has contributed to various ICC model contracts, including the ICC Model International Sale Contract He is also the co-chair of the ICC Task Force on Public Procurement © 2010 International Chamber of Commerce Lauri Railas, LL.M (Helsinki and London), LL.D (Helsinki), is an attorney-at-law at Krogerus Attorneys in Finland He is a member of the Finnish Bar 121 International Chamber of Commerce FRANK REYNOLDS © 2010 International Chamber of Commerce TABLE OF CONTENTS Frank Reynolds is the President of International Projects Inc., a US-based international trading and consulting firm Besides representing the US for the Incoterms® 2000 and Incoterms® 2010 revisions, he has written or co-authored 16 books on various international trade topics including ICC’s A to Z of International Trade dictionary He also has written over 300 columns for such international publications as the Journal of Commerce, The Exporter and ICC’s Documentary Credit Insight 122 Frank has lectured throughout the US on such trade-related topics as the Incoterms® rules, documentary credits, US free-trade agreements, export and import procedures and the Harmonized System for over 25 years He served on the US Commerce Department’s District Export Council for 22 years, and his international projects received an E Award for Export Excellence He also holds a customs broker licence from the US Department of Homeland Security, Customs and Border Protection MIROSLAV SUBERT Miroslav Subert holds a juris doctor degree from Charles University in Prague A long-time expert on the Incoterms® rules, he worked for many years at senior management level in companies dealing with foreign trade, shipping and forwarding in the United Kingdom, Croatia, Belgium and the Czech Republic Dr Subert currently serves as a lecturer at a number of institutions in Prague, including the University of Economics, the Institute for Foreign Trade, Transport and Forwarding and the Perner Institute He is the Vice-Chair of the Czech Society for Transport Law and a professional and legal adviser on foreign trade, transport and insurance to ICC Czech Republic He has written widely on international trade issues, including books on international transport, sales and documentary credits, and is a regular contributor to professional publications and newspapers Dr Subert wrote a guide to Incoterms® rules in 2000 and has spearheaded the translation of recent versions of the Incoterms rules into Czech Incoterms ® 2010 ICC SECRETARIAT EMILY O’CONNOR Ms O'Connor graduated from Columbia Law School in New York, first practising in the US State Department's Office of the Legal Adviser, focusing on International Court of Justice cases on the US application of the death penalty to foreign nationals She then practised international corporate law at Debevoise & Plimpton, working on future flow equity issuances, mergers and acquisitions and a range of media deals, before moving to the international policy arena SHANE DALY Shane Daly is a graduate of the National University of Ireland, Galway and University College London, specializing in International Commercial Law with Dispute Resolution and International Public Law He also holds a diploma from the Université de Poitiers In addition to his work as an assistant to the Incoterms® 2010 Drafting Group, Mr Daly has contributed to other projects of the ICC Commission on Commercial Law and Practice, including model contracts on mergers and acquisitions and on subcontracting He is to commence as a trainee solicitor in Dublin in 2011 © 2010 International Chamber of Commerce TABLE OF CONTENTS Emily O'Connor is the Senior Policy Manager of the ICC Commission on Commercial Law and Practice and oversaw the development of Incoterms® 2010 She joined the ICC International Secretariat in Paris in 2006, after several years at the US Council for International Business in New York, where she managed intellectual property and competition law issues 123 International Chamber of Commerce ICC Dispute Resolution TABLE OF CONTENTS Incorporating one or more of the Incoterms® rules into a contract does not in itself constitute an agreement to use ICC dispute resolution services Contracting parties that wish to resort to one or more or these services in the event of a dispute should reach a specific and clear agreement to that effect For this purpose, ICC offers suggested and standard clauses that parties may incorporate into their contracts Failing this, parties should agree on the use of ICC rules in an exchange of correspondence ICC offers an array of services to help parties overcome disputes arising from international trade These services respond to different needs and different situations Each is governed by a set of rules defining a neutral procedure capable of accommodating cultural, linguistic and legal diversity, as well as the specificities of given sectors and activities Arbitration, administered by the ICC International Court of Arbitration, generally leads to a binding decision issued by a tribunal of one or three arbitrators The decision is widely enforceable because of the legal recognition arbitration enjoys in almost all the world’s trading nations Amicable dispute resolution embraces various methods of dispute resolution that seek a settlement by consensual means The neutral third party and the parties to the dispute decide on the settlement technique to be used, which may be mediation, neutral evaluation, a mini-trial or a combination of different techniques © 2010 International Chamber of Commerce Dispute boards are ongoing bodies set up for the duration of a contract to resolve disputes as and when they arise during the life of the contract Different types of dispute boards are available, depending on the powers the parties wish to grant to the members of the board and the force of their determinations 124 Expertise consists of engaging a specialist to give an opinion on a matter requiring specialist knowledge and skills, such as technical, financial or legal know-how The services offered range from the search for a suitable expert to the complete administration of the expert’s mission A specific service called DOCDEX is offered for disputes relating to documentary credits, bank-to-bank reimbursements, collections and guarantees For further information, including all rules and clauses, visit our dispute resolution pages at www.iccwbo.org Incoterms ® 2010 Copyright notice and synopsis of trademark usage rules for Incotermsđ 2010 Copyright â2010 International Chamber of Commerce (ICC) All rights reserved TABLE OF CONTENTS “Incoterms” is a registered trademark of the International Chamber of Commerce Although ICC encourages and promotes the use of the Incoterms® rules by third parties in sales contracts in compliance with ICC’s copyright policy, “Incoterms” is not a generic term that may be used to designate any trade terms, but is a trademark used to designate only the terms devised by ICC and products and services from ICC - Use the trademark “Incoterms” to refer only to ICC’s Incoterms® rules and other Incoterms® products and services from ICC - In text, use “Incoterms” as an adjective, not a noun - Do not use “Incoterms” without the initial letter as a capital letter - Do not use “Incoterm” (without the final “s” ) An individual term from the Incoterms® rules should be referred to as an Incoterms® rule, and never as an “Incoterm” - Use the registered trademark symbol ® next to the trademark “Incoterms” - Any use of the trademark “Incoterms” in association with products and services not from ICC requires a licence from ICC Below are some rules on the correct usage of the “Incoterms” trademark: More information on the correct usage of ICC’s “Incoterms” trademark can be found on ICC’s website on the Incoterms® rules at www.iccwbo.org/incoterms © 2010 International Chamber of Commerce ICC holds all copyright and other intellectual property rights in this collective work No part of this work may be reproduced, copied, distributed, transmitted, translated or adapted in any form or by any means (whether graphic, electronic, or mechanical, and including, without limitation, photocopying, scanning, recording, taping, or by use of computer, the Internet or information retrieval systems) without the written permission of ICC through ICC Services, Publications Department 125 International Chamber of Commerce ICC at a glance ICC is the world business organization, a representative body that speaks with authority on behalf of enterprises from all sectors in every part of the world The fundamental mission of ICC is to promote trade and investment across frontiers and help business corporations meet the challenges and opportunities of globalization Its conviction that trade is a powerful force for peace and prosperity dates from the organization’s origins early in the last century The small group of far-sighted business leaders who founded ICC called themselves “the merchants of peace” Because its member companies and associations are themselves engaged in international business, ICC has unrivalled authority in making rules that govern the conduct of business across borders Although these rules are voluntary, they are observed in countless thousands of transactions every day and have become part of the fabric of international trade ICC also provides essential services, foremost among them the ICC International Court of Arbitration, the world’s leading arbitral institution Another service is the World Chambers Federation, ICC’s worldwide network of chambers of commerce, fostering interaction and exchange of chamber best practice Business leaders and experts drawn from the ICC membership establish the business stance on broad issues of trade and investment policy as well as on vital technical and sectoral subjects These include financial services, information technologies, telecommunications, marketing ethics, the environment, transportation, competition law and intellectual property © 2010 International Chamber of Commerce ICC enjoys a close working relationship with the United Nations and other intergovernmental organizations, including the World Trade Organization, the G20 and the G8 126 ICC was founded in 1919 Today it groups thousands of member companies and associations from over 120 countries National committees work with their members to address the concerns of business in their countries and convey to their governments the business views formulated by ICC For more information, please visit www.iccwbo.org Incoterms ® 2010 Other Incoterms® 2010 products Available in October 2010 Guide to Incoterms® 2010 By Jan Ramberg ICC Pub No 720, 2010 edition ISBN: 978-92-842-0082-5 Guide to Incoterms® 2010 by renowned expert Jan Ramberg clarifies how the Incoterms® rules work together with other terms of a contract of sale and contracts for carriage, insurance and payment This publication will be invaluable for all those involved in international trade: exporters, importers, lawyers, freight forwarders Incoterms® 2010 Wall Chart ICC Pub No 716L, 2010 edition ISBN: 978-92-842-0090-0 This practical wallchart explains all 11 Incoterms® 2010 rules at a glance, ideal for classrooms, offices or as a gift for business partners Incoterms® 2010 Bilingual English/French edition ICC Pub No.715EF ISBN: 978-92-842-0089-4 Bilingual editions in other languages are available from ICC national committes around the world Please visit www.incoterms.com or www.iccbooks.com for more information Training ICC Events runs training courses on the Incoterms® 2010 rules, as well as on international arbitration and negotiating international contracts for business people, corporate counsel, lawyers and legal practitioners involved in international trade www.iccwbo.org/events ICC Pub No 758, 2010 edition ISBN: 978-92-842-0036-8 The ICC Uniform Rules for Demand Guarantees (URDG), first adopted in 1991, reflect international standard practice in the use of demand guarantees Further, they balance the legitimate interests of all parties Since their adoption, the URDG have gained international acceptance and official recognition by bankers, traders, industry associations and international organizations including UNCITRAL, FIDIC and the World Bank Also available in French-English (bilingual edition) Order at www.iccbooks.com © 2010 International Chamber of Commerce In the banking sector Uniform Rules for Demand Guarantees (URDG) 127 International Chamber of Commerce ICC publications for global business ICC’s list of specialized publications covers a range of topics including international banking, international trade reference and rules (the Incoterms® rules), law and arbitration, counterfeiting and fraud, model commercial contracts and environmental issues ICC products are available from ICC national committees, which exist in over 90 countries around the world Contact details for a national committee in your country are available at www.iccwbo.org © 2010 International Chamber of Commerce You may also order ICC products online from the ICC Business Bookstore at www.iccbooks.com, or purchase them at the ICC Secretariat, located at the address below 128 ICC Publications 38 Cours Albert 1er 75008 Paris France Tel +33 49 53 29 23 Fax +33 49 53 29 02 e-mail pub@iccwbo.org incoterms 2010 final.e$Sebook (original)_incoterms cover try 22/10/13 16:42 Page1 Incoterms ® 2010 EXW FCA CPT CIP DAT DAP DDP FAS FOB CFR CIF Incoterms® rules define the responsibilities of buyers and sellers for the delivery of goods under sale contracts They are the authoritative rules for determining how costs and risks are allocated to the parties Incoterms rules are regularly incorporated into sale contracts worldwide and have become part of the daily language of trade Incoterms® 2010 contains the ICC rules for use of the 11 Incoterms trading terms It takes into account the latest developments in commercial practice, and updates and consolidates some of the former rules All sale contracts should make reference to the Incoterms® 2010 rules as the latest version of the Incoterms rules The International Chamber of Commerce, the world business organization, based in Paris, is the global leader in the development of standards, rules and reference guides for international trade ICC Publication No 715E ISBN : 978-92-842-0217-1 ICC Business Bookstore iccbooks.com Cover illustratio n: ' istockphoto.com/Geopaul ICC has been writing and publishing the Incoterms rules for more than 70 years, providing importers, exporters, lawyers, transporters, insurers and students in the international arena with rules and guidance reflecting the latest developments in the trading environment ICC rules for the use of domestic and international trade terms ... Incoterms ® 2010 CONTENTS Foreword Introduction INCOTERMS® 2010 Rules for any mode or modes of transport EXW 15 FCA 23 CPT 33 CIP 41 DAT 53 DAP 61 DDP 69 FAS 79 FOB 87 CFR 95 CIF 105 Incoterms® 2010. .. bringing the goods to the named place of destination Incoterms ® 2010 Classification of the 11 Incoterms® 2010 rules The 11 Incoterms® 2010 rules are presented in two distinct classes: EXW EX WORKS... involved in the delivery of goods from sellers to buyers How to use the Incoterms® 2010 rules Incorporate the Incoterms® 2010 rules into your contract of sale Choose the appropriate Incoterms